Construction, Latvia, Legislation, Real Estate

The number of transactions with land for private construction, with an area of 300 – 3000 m² in Riga and its surroundings as compared with 2013, increased by 24.4%, as indicated in the review of the market of land for private construction prepared by ARCO REAL ESTATE.

In contrast to the segment of private houses, where in the first three quarters of 2014 an increased activity was observed only in Riga, the growth of activity in the segment of land for private construction was approximately the same both in Riga and its surroundings. In Riga, the average number of transactions in the first three quarters of 2014 was by 26.1% bigger than in 2013, and in the vicinity of Riga, this indicator was 23.8%.

In contrast to the trend of previous years, when in the segment of land for private construction there was observed a fall in prices, the growth of activity in the first three quarters of 2014 has not resulted in significant price changes, and the overall level of prices has remained to be approximately the same as in 2013.

According to observations by Mr. M. Laukalējs, most transactions were concluded regarding land plots with area from 500 to 1500 m². These areas in the market enjoyed the greatest demand, and together they accounted for more than two-thirds of the transactions concluded.

Most popular Riga housing estates as to the number of transactions concluded in the first three quarters of 2014 were Bieriņi (10.3%), Imanta (8.1%), Trīsciems (7.5%), Dārziņi (4.7%), Dārzciems (4.4%), Jugla (4.4%), Jaunciems (3.4%), Ziepniekkalns (3,4%) un Pleskodāle (3.1%).

The main factors affecting the price of acquisition of land for construction of detached houses in 2014 were the availability of public utilities, the possibilities of land use, the availability of access roads, their coverage and quality, the distance to Riga or city centre, the presence of and the distance to the infrastructure objects and the proximity and availability of public transport, says the expert.